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XYZ Corp is considering acquiring a korex machine with a $50,000 initial investment based on its future cash flows korex has an APR of 12%.
XYZ Corp is considering acquiring a korex machine with a $50,000 initial investment based on its future cash flows korex has an APR of 12%. A Zorex machine can be bought for $50,000 and it will generate the exact same money future cash flows as the korex, but they start a year later the IPROK Zorex machine is almost likely.
A) less than 12%
B) same as the korex machine
C) more than 12%
D) cant be determined without knowing the specific future cash flow.
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